Tele2 agreed a multi-market core network upgrade deal with Nokia covering the rollout of the vendor's cloud packet core system, in a move Nokia said will boost the Sweden-based operator's LTE capabilities and pave the way for deploying 5G technology.
Nokia said it will equip Tele2 with its cloud mobility manager and cloud mobile gateway running on an open-stack network functions virtualisation (NFV) infrastructure, which the vendor explained will enable the operator to adopt an automated cloud networking and service operations model.
That automated system allows Tele2 to deploy network resources "whenever and wherever they are needed", Nokia revealed in a statement announcing the deal.
The vendor will initially deploy its cloud infrastructure on Tele2's network in Croatia, and will subsequently roll out the equipment in Sweden, the Baltic states, Austria, the Netherlands, and Kazakhstan.
Nokia stated that Tele2 is implementing the cloud infrastructure to ensure it can meet the demand for mobile data bandwidth on its LTE networks in those markets. The operator is also paving the way for growing Internet of Things connections, and the future launch of 5G technology.
Basil Alwan, president of IP/Optical Networks at Nokia, explained that the company's cloud products "will allow Tele2 to connect a greater number and variety of devices and deliver a broader range of services."
Nokia's upgrade will also enable Tele2 to "offer new services faster, ensure scalability and performance, and evolve", Alwan continued.
Tele2 CEO Allison Kirkby last week explained that the operator is in the process of deploying LTE across its network, which comprises 16 million customers across nine markets.
The CEO commented on the 4G upgrade programme as Tele2 revealed that its net profit had fallen from SEK309 million (€32.5 million/$35.7 million) in the second quarter of 2015 to SEK60 million in the recent period. Kirkby said the bulk of the decline was due to the cost of deploying LTE in the Netherlands during the 2016 quarter.
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